Written Answers Nos. 218 - 223
218. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if she has or will meet leaders in industry to maximise job opportunities through economic growth in the short to medium term; and if she will make a statement on the matter. [16310/16]
View answerA key objective of the Action Plan for Jobs process is to rebuild our economy based on enterprise, talent, innovation and exports. It is enterprises that create jobs and every day I am meeting with business owners, promoters and entrepreneurs. I am convinced there is the ambition, skills and entrepreneurialism in our enterprise base to achieve the stretch targets for job creation set in the Programme for a Partnership Government. We have 155,000 more people at work than when we launched the first Action Plan in 2012, with a strong contribution from both manufacturing and services sectors across the economy to employment growth.
Specifically, private sector involvement is crucial to the development and implementation of both the Action Plan for Jobs and Regional Action Plan for Jobs initiatives. I will shortly be re-convening the Industry Partners Forum, which was established in 2013 to provide strategic advice on the development of each year’s Action Plan for Jobs.
The Regional Implementation Committees, overseeing the implementation of the Regional Action Plans, are made up of key local public and private stakeholders. Enterprise Champions have been appointed in each region to maximise the impact of the plans by communicating the message and vision of the initiative to the local business community, driving the enterprise and jobs focus of the Plans, and securing industry engagement in generating new ideas and actions.
I have asked my Department to initiate the process to develop the 2017 Action Plan for Jobs. We will be consulting widely with external stakeholders, including industry, over the coming months to gather the best ideas to help deliver sustainable full employment.
219. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if she has identified indicators of inflationary tendencies which will affect economic growth; and if she will make a statement on the matter. [16311/16]
View answerCosts, prices and inflation levels are a key element of Ireland’s international competitiveness. The National Competitiveness Council recently published their annual Costs of Doing Business report which examines a range of enterprise costs that are largely domestically determined such as labour, property, transport, energy, water, waste, communications, credit, and business services.
The Council concluded that while Ireland’s cost base has improved across a range of metrics over the last five years - making Ireland a more attractive location for firms to base their operations in - Ireland remains a relatively high cost location for a number of key business inputs. A range of upward cost pressures, however, are also evident, particularly in relation to property and business services.
More generally, the overall Consumer Prices Index (CPI) published by the Central Statistics Office shows that prices on average remained unchanged in May compared with May 2015. On a monthly basis, price increases were also muted - and the CPI increased by just 0.5 per cent in the month. Within the CPI, however, there are a number of developments worth noting.
Miscellaneous Goods & Service prices increased by 5.6 per cent in the year - primarily due to higher dwelling, motor and health insurance premiums. Within this, motor insurance increased by 35.2 per cent in the year. Not only did the “Miscellaneous” category have the highest rate of inflation, it also contributed most to the overall inflation rate due to its weighting in the consumer basket.
The price of education services increased by 3.8 per cent, mainly due to the extra costs associated with participating in third level education while Restaurants and Hotel prices rose by 2.1 per cent mainly due to an increase in the cost of hotel accommodation and higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, and cafes.
Significant price decreases were recorded in Transport (-5.3%), Furnishings, Household Equipment & Routine Household Maintenance (-3.1%), Communications (-1.2%) and Food & Non-Alcoholic Beverages (-1.1%).
According to the CSO, Transport prices fell mainly due to lower petrol and diesel prices, a reduction in the price of motor cars and a fall in air fares. Prices for Food and Non-Alcoholic Beverages decreased mainly due to lower prices across a range of products such as meat, chocolate and confectionery, milk, cheese, eggs and bread and cereals.
The report of the National Competitiveness Council is a timely reminder of the risks of complacency regarding our cost competitiveness. To protect the gains achieved to date, to sustain the recovery, and to ultimately spread the benefits of economic growth to all, we must continue to enhance all aspects of our cost competitiveness. The policy implications of the Costs of Doing Business report and the associated reforms required to address Ireland’s cost base, will be included in the Council’s annual Competitiveness Challenge report which will be brought to Government and published later this year.
220. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation her plans to develop the small and medium enterprise sector and to identify issues negatively impacting on it; and if she will make a statement on the matter. [16312/16]
View answer221. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation her plans to facilitate job creation through the small and medium enterprise sector; and if she will make a statement on the matter. [16313/16]
View answerI propose to take Questions Nos. 220 and 221 together.
Micro, small and medium sized enterprises (SMEs) are the lifeblood of the Irish economy, accounting for 99.7% of all active enterprises in the State. Accordingly, SMEs are a central focus for my Department. In conjunction with its Agencies, my Department works to develop SMEs and to facilitate job creation, while bearing in mind the various issues that impact on SMEs. This work is driven by Government policies and plans, including: Enterprise 2025, the National Policy Statement on Entrepreneurship, the Action Plan for Jobs and the Regional Action Plans for Jobs.
The development of our SMEs is vital and I will ensure the Local Enterprise Offices (LEOs) continue to be the ‘first-stop-shop’ for providing advice and guidance, financial assistance and other supports to those wishing to start or grow their own business. LEOs also provide a ‘signposting’ service in relation to all relevant state supports available through agencies such as Revenue, the Department of Social Protection, Education and Training Boards, Credit Review Office, and Microfinance Ireland. The ‘Supporting SMEs’ Online Tool (www.localenterprise.ie/smeonlinetool) provides help start-ups to navigate the range of Government business supports for which they could be eligible.
Last week, I announced further capital funding investment in the LEOs under the LEO Competitive Fund this year. As part of this scheme, an initial allocation of €2 million is being made to support 16 collaborative job creation initiatives at local and regional level in support of the Regional Action Plans for Jobs. A further call for proposals later this year will aim to support more such initiatives to strengthen job creation in each region.
Enterprise Ireland ensures that all of its clients, from Entrepreneurs and Start-Ups, to exporting SMEs and scaling companies, can access the appropriate supports to help them to create and sustain jobs. These supports include advice for competing sustainably in international markets, sales and marketing; research and development; and start-up investment.
On identifying impacts, one of the primary tools I have as Minister to hear from SMEs is through the Advisory Group on Small Business (AGSB). The AGSB was set up to give a greater voice in the development of policy to SMEs. Issues negatively affecting the growth and development of SMEs are identified, and possible solutions are suggested by the Group. My colleague, Minister of State for Employment and Small Business, Pat Breen TD, will chair the group.
Another formal structure is the Retail Consultation Forum. Given the importance of this sector to the economy it was established to allow key issues of relevance to the retail sector to be discussed, with a view to identifying practical actions which could be taken by Government, or by industry itself, to support the sector with particular emphasis on achieving sustainable jobs growth in the sector.
As well as these formal structures, my Department regularly undertakes consultation exercises on various matters that are open to SMEs and their representative organisations to provide input.
The outlook for new job creation in 2016 is positive and the focus of the LEOs and Enterprise Ireland will remain on ensuring that their clients have access to all of the necessary supports required. This focus, coupled with their priority to support entrepreneurship across the regions, and develop strong, export focussed, ambitious Irish companies that can win new business, will mean more jobs for Ireland over the next 12 months.
222. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if innovation and technology feature in the business sector; the reliability of grant-aid from the European Union; and if she will make a statement on the matter. [16314/16]
View answerInnovation and Technology are critical elements of a successful Irish business sector. The future for Irish companies and the Irish economy will be determined by our ability to take advantage of global opportunities in order to deliver export-led growth. In essence; exports equals jobs. As such, high-quality, innovative and internationally competitive Irish companies are fundamental to Ireland's future prosperity. Research, development & innovation enable firms to develop products and services that are competitive and attractive on the global market, which enable these companies to win export sales, thus creating jobs and economic prosperity in Ireland.
This reality is well recognised within businesses with national Business Expenditure on Research & Development (BERD) increasing 15% to over €2bn between 2011 and 2013. Enterprise Ireland provides research, development and technological innovation support relevant at all stages of company development, enabling companies to progress from undertaking an initial research project on to higher level innovation and R and D activities. The number of companies receiving such support has grown substantially in recent years and now over 1,200 companies are supported to engage in research, development and innovation every year.
The current EU Framework Programme for research and innovation, which is part of the drive to create new growth and jobs in Europe, is Horizon 2020. Enterprise Ireland co-ordinate the implementation of Horizon 2020 through the National Support System and the National Director for Horizon 2020. Enterprise Ireland’s team comprises of representatives across the research funding departments and agencies. Horizon 2020 has a budget of almost €75 billion and runs over the period 2014-2020. Through Enterprise Ireland, Irish academics and companies are continually supported in their engagement with the opportunities available by the Horizon 2020 National Support System. Irish companies who compete successfully for funding from Horizon 2020 will boost their innovative capability and competitiveness which in turn delivers strong national economic impacts.
In the first 23 months of Horizon 2020, 588 Irish applicants were successful in securing funding. For this period, Ireland's drawdown was €251 million, giving an overall Irish success rate of 14.62% (higher than the EU Member State average of 13.5%). Of this funding, over €72 million went to companies with €52 million of this figure going to SMEs.
Ireland has an ambitious target of winning €1.25 billion under Horizon 2020, which we are on target to meet. 80% of the Horizon 2020 budget (€61 billion) is to be allocated between 2016 and 2020, which gives Irish companies the opportunity to continue to availing of these supports. Our strategy to achieve these targets is being driven by the Horizon 2020 High Level Group, chaired by my Department. All Departments and Agencies engaged in research funding are represented on the High Level Group and particular attention is being given to maximising industry participation in Horizon 2020.
In addition to Horizon 2020, funding from European Regional Development Funds (ERDF) supports a number of Enterprise Ireland R&D programmes. Over the 2014 – 2020 period Ireland stands to drawdown in the region of €65m in such funding.
223. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if she provides adequate working capital to the small and medium business sector; and if she will make a statement on the matter. [16315/16]
View answerWorking capital is the lifeblood of SMEs and has been a central focus of Government for many years. Over the last five years the Government has worked tirelessly to ensure that the access of SMEs to an appropriate supply of financing from both bank and non-bank sources is improved and that all businesses have access to appropriate sources of finance to grow develop and expand. A number of key policy and legislative initiatives were developed and delivered since March 2011 with some being reviewed and amended as necessary, and these may be grouped as follows:
Credit Guarantees
- The Credit Guarantee Acts 2012 - 2016, and Schemes made thereunder, have resulted in encouragement of bank lending to Irish SMEs to both create new jobs and protect existing ones. To date approx. €50 million of loans have been sanctioned in more than 300 facilities, and some 2200 jobs were created/maintained;
- New Schemes are currently being drafted to extend the remit of credit guarantees (covering expanded forms of lending, and greater risk sharing), and introduce new counter guarantees to enhance the provision of both State and EU-sourced finance for Irish SMEs;
Microfinance Ireland (MFI)
- The Microenterprise Loan Fund Act, 2012 established MFI to provide loans of up to €25,000 to Irish micro-enterprises. To date approx. €13 million was been loaned to 870 firms, with more than 2000 jobs being created/maintained.
- The operation of MFI was reviewed in 2015, and a number of changes were made to ease access to loans primarily, via the removal of the previous prerequisite of a bank loan rejection. The legislative changes have resulted in a substantial increase in the activities both nationally and regionally in the last year and a half.
Strategic Banking Corporation of Ireland (SBCI)
- The Strategic Banking Corporation of Ireland Act 2014 established the SBCI, and tasked it to provide up to €800m of funds for Irish SMEs previously over reliant on bank financing. This tranche of funding has now been fully committed to business.
Prompt Payments Code (PPC)
- In May 2015, the Government launched the PPC to encourage and promote best practice between businesses and suppliers and improve cash flow for businesses and, ultimately, drive a change in the payment culture in Ireland.
Credit Review Office
- The Credit Review Office continues to review applications for credit made by SMEs or Farm borrowers with viable business propositions who have had an application for credit of up to €3 million declined or reduced by Bank of Ireland, Allied Irish Bank or Ulster Bank.
- The Credit Review Office also examines cases where borrowers feel that the terms and conditions of their existing loans, or a new loan offer, are unfairly onerous or have been unreasonably changed to their detriment.
My Department Officials continue to work with other Departmental and Agency officials through the State Bodies Group chaired by the Department of Finance to ensure appropriate financing options including working capital are available to SMEs, in line with commitments in the Action Plan for Jobs process.
The Government will continuously monitor the availability of working capital for our SMEs to ensure that our SMEs are well positioned to grow further and to create jobs.
